The UK property market has been on a rollercoaster ride over the past few years, with prices soaring to record highs in some areas, while others have struggled to keep up. However, experts are now predicting that the growth of the UK property market will decelerate in 2022.
According to a recent report by the Royal Institution of Chartered Surveyors (RICS), the UK property market is expected to slow down in the coming year, with house price growth predicted to fall from 4% in 2021 to just 1% in 2022. This is due to a number of factors, including the end of the stamp duty holiday, rising interest rates, and the ongoing impact of the COVID-19 pandemic.
The stamp duty holiday, which was introduced in July 2020 to help boost the property market during the pandemic, has been a major driver of house price growth over the past year. However, the holiday is set to end on 31 March 2022, which is expected to lead to a slowdown in the market as buyers rush to complete their purchases before the deadline.
In addition, interest rates are expected to rise in 2022, which will make mortgages more expensive and could deter some buyers from entering the market. The Bank of England has already hinted that it may raise interest rates in the coming months, which could have a significant impact on the property market.
Finally, the ongoing impact of the COVID-19 pandemic is also expected to play a role in the deceleration of the UK property market. While the vaccine rollout has been successful in the UK, there are still concerns about the economic impact of the pandemic, particularly as the government begins to wind down its support measures.
Despite these challenges, however, there are still reasons to be optimistic about the UK property market in 2022. For example, the government has recently announced a number of measures to support the housing market, including a new mortgage guarantee scheme and a £12bn investment in affordable housing.
In addition, the UK property market has shown remarkable resilience over the past year, with prices continuing to rise even in the face of the pandemic. While growth may slow down in 2022, it is unlikely that the market will experience a significant downturn.
Overall, while experts are predicting that the growth of the UK property market will decelerate in 2022, there are still reasons to be optimistic about the future of the market. With the right support and investment, the UK property market could continue to thrive in the years to come.
